Invest in Office Rental Outside the Center Strongly Rise
The office rental market in the vicinity of Hanoi and Ho Chi Minh City is showing signs of strong growth. Especially after the COVID-19 pandemic, the form of direct work is gradually becoming popular, causing many businesses to calculate more about investment strategies in the field of offices and real estate.
Limited land fund for office rental
Grade A office supply is extremely scarce in the central areas of Hanoi and Ho Chi Minh City due to a lack of land funds. After more than two years of being affected by the COVID-19 pandemic, the office leasing segment in Vietnam is gradually recovering with the majority of demand coming from businesses that want to expand their business activities to the region. neighborhoods and new international companies entering.
In November 2022 alone, the whole country had 11,943 newly established enterprises, in the 11 months of 2022, there were 194,700 newly established enterprises that returned to operation.
In the office rental segment, office project owners will adjust service levels to meet the growing demand for lease flexibility and the ability to serve a distributed workforce. supplement globally.
In addition, many businesses are also moving towards the trend of greening offices, forcing investors to re-evaluate the designs before starting the project when building office buildings in the inner city and area. vicinity.
Many real estate experts also said that common problems of the world economy, such as pressure from inflation, rising interest rates or the risk of a global economic recession can also cause problems. impacts on Vietnam’s real estate market in general and each segment in particular.
It is worth noting that the situation of office leasing in recent times has clearly improved. The average office rent is about 717,900 VND/m2/month, up 1% QoQ. The absorption rate reached 91%, up 1% QoQ and YoY thanks to improvements in all of the above segments.
Office rental outside the vibrant center
In the coming time, the rental rate and absorption rate of the whole office market is expected to increase sharply thanks to the reopening of international routes. The office rental trend will focus more on flexibility as most businesses have experience with working-from-home methods after the COVID-19 pandemic.
Over the past time, the market for non-central offices is growing strongly. New supply from projects in the New Urban Area will be a new choice for businesses in the context that the supply of office space in the CBD is increasingly scarce and rents tend to increase.
The average monthly rent for a Grade B building is currently at 34 USD/m2. On the other hand, the monthly rental transaction level of Grade A office space can reach 60 USD/m2 or more.
In recent years, the supply is scarce and the demand for office rental in Ho Chi Minh City and Hanoi has always remained high, so rents still tend to increase despite going through many difficult periods.
According to this unit’s forecast, the Ho Chi Minh City area alone will welcome about 60,000 square meters of new office space in the coming period. Most of this supply comes from near-central places such as Tan Phu district or District 7.
As for the central area of Ho Chi Minh City, there is no supply of Grade A office space from now until the end of the year. In the central area, businesses are also tending to open more back-office areas or move offices to places near the center such as the old district 2 and district 7, to reach customers and partners quickly.
You can read the previous article here: New Scams Office for Leasing